Apple stock is at $152.18 as of 02:35 PM EDT on Thursday.
U.S. Senators have stepped up their pressure on Apple (NASDAQ:AAPL), asking the intelligence agency to look into whether a merger between the tech giant and Yangtze Memory Technologies, a Chinese memory chip manufacturer, raises national security issues.
The Senate Intelligence Committee’s vice-chair and head, Senator Marc Rubio, wrote to Director of National Intelligence Avril Haines requesting a “public examination and review” of Yangtze Memory Technologies and any dangers it may present.
No matter the market for the product offerings created by such a partnership, the lawmakers wrote, “We write to convey that any decision to partner with YMTC, no matter the intended market of the product offerings developed by such a partnership, would affirm and reward the PRC’s distortive and unfair trade practices, which undermine U.S. companies globally by giving Chinese firms significant advantages at the expense of foreign competitors.”
They also noted that Yangtze Memory Technologies was referred to by the Biden Administration in 2021 as China’s “national champion memory chip producer” and that Yangtze Memory Technologies is aiding the Chinese Communist Party in its efforts to undermine American innovation and leadership in the semiconductor sector.
The congressmen said that any hypothetical alliance between Apple (NASDAQ:AAPL) and Yangtze Memory Technologies would “endanger” the value of the American semiconductor industry and run the risk of “nullifying efforts to support it, threatening the health of chipmakers in the U.S. and allied countries and promoting Beijing’s goal of controlling the global semiconductor market.”
Senators Chuck Schumer, the majority leader in the Senate, and John Cornyn joined Senators Warner and Rubio in signing the letter. Seeking Alpha contacted Apple (NASDAQ:AAPL), based in Cupertino, California, but they did not react right away.
After reading a story that the American tech giant was considering a partnership with Yangtze Memory Technologies, Senator Rubio and Congressman Michael McCaul issued a warning to Apple (NASDAQ:AAPL) earlier this month. Due to the Chinese company’s ties to the Beijing government, Seeking Alpha at the time reported that such a partnership might be criticized.
Yangtze Memory Technologies’ chips are not used by Apple (NASDAQ:AAPL) in any products, but the company is “considering sourcing from YMTC for NAND chips to be used in select iPhones marketed in China,” according to a statement to the Financial Times earlier this month.
Yangtze Memory Technologies is in competition with other manufacturers of memory chips, including Micron Technology (NASDAQ:MU) and Samsung Electronics (OTCPK:SSNLF).
Apple Stock Outlook
According to a statement made by Bank of America on Wednesday, Apple (NASDAQ:AAPL) is probably profiting from “attractive” incentives from American telecommunications companies that encourage customers to upgrade to the recently announced iPhone 14 product line. Apple stock has a 52-week high price is $182.94, while its 52-week low price is $129.04. As of 02:35 PM EDT on Thursday, Apple stock is trading a little lower at $152.18.
Featured Image- Megapixl @Pojoslaw
Author Jowi Kwasu